Quarterly report pursuant to Section 13 or 15(d)

Note 11 - Discontinued Operations

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Note 11 - Discontinued Operations
9 Months Ended
Sep. 30, 2018
Notes  
Note 11 - Discontinued Operations

NOTE 11 – DISCONTINUED OPERATIONS

 

On March 31, 2017, the Company completed the sale of substantially all the assets, other than cash, used in or connection with the Company's home grain mill and kitchen mixer business to John Hofman and Bruce Crane, former officers and directors of the Company, in consideration for the assumption by such persons of substantially all the liabilities incurred by the Company in connection with such business.  The assets divested consisted of the non-cybersecurity assets of the Company and included accounts receivable, inventory, deposits, property and equipment and intangible assets.  The liabilities divested included the non-cybersecurity liabilities of the Company and included accounts payable and accrued expenses and long and short-term notes payable and accrued interest thereon.  Upon completion of the divestiture, the Company recognized a $484,927 loss on disposal.  Additionally, during the period from February 22, 2017 through March 31, 2017, the Company incurred a loss from discontinued operations of $8,737.

 

The following table shows the value of assets and liabilities divested:

 

Assets

 

 

Accounts receivable

$

40,044

Deposits and prepaid expenses

 

90,559

Inventory

 

1,157,555

Property and equipment

 

117,254

Intangible assets

 

62,820

Total Assets

 

1,468,232

 

 

 

Liabilities

 

 

Accounts payable and accrued expenses

 

692,399

Notes payable – short term

 

64,000

Notes payable – short term, related party

 

91,679

Line of credit

 

135,227

Total Liabilities

 

983,305

 

 

 

Loss on disposal

$

484,927